Northern Australia Infrastructure Facility invested in just one coal project despite ‘fossil fuel slush fund’ claims

The Greens have been accused by a Queensland senator of being more interested in creating “sound and fury” for their inner-city voters and less in improving the lives of regional Australians.

Just one project funded by the Northern Australia Infrastructure Facility has been connected to coal or gas, despite the Greens branding it a “fossil fuel slush fund” and repeatedly attempting to ban it from lending to those resources.

Meanwhile, the $1.2bn in investment decisions for Queensland-based projects is forecast to inject $9.5bn into the economy and create 4700 jobs, new data reveals.

The Greens last month failed in a bid to ban the NAIF from lending to coal and gas projects, having succeeded in getting an amendment through last year that required it to consider Australia’s net-zero obligations when making lending decisions.

Construction at the Pembroke Olive Downs mine in May this year. Picture: Supplied

The NAIF provided the Olive Downs South coalmine with $167m in concessional financing in April 2021, and it is the only fossil-fuel project to have received funding.

It is worth less than 3 per cent of the NAIF’s total $7bn in concessional loans.

The NAIF board –, responding to Senate estimates questions on notice – also confirmed it was not currently considering financing fossil fuel infrastructure projects and its requirement to consider net zero obligations had not affected any investment decisions.

Townsville-based opposition resources spokeswoman Senator Susan McDonald said the Greens’ words and actions “risked the prosperity” Australians had enjoyed for decades.

“We’ve seen time and time again that the Greens are more interested in created sound and fury for their own voters in inner-city places, and less interested in improving the lives of regional Australians,” she said.

Opposition resources spokeswoman Senator Susan McDonald. Picture: Blair Jackson

Resources Minister Madeleine King’s spokesman noted the Greens amendment to ban the NAIF from lending to coal and gas projects had not passed.

He said the expectations of the facility, and recent changes to earmark $500m of its investment capacity for critical minerals projects, highlighted the government’s priority to transition Australia’s energy sector to net zero emissions by 2050.

Acting Greens leader Senator Mehreen Faruqi said a previous government had tried to use NAIF to bankroll Adani and it had successfully given $167m of taxpayer funds to a coalmine.

“If Labor’s fossil-fuel bankrolling days are truly over, why would they resist an amendment to that effect?” Senator Faruqi said.

Acting Greens leader Senator Mehreen Faruqi. Picture: NCA NewsWire/Martin Ollman

“It sounds to me like Labor wants to keep their options open, and keep the cash on hand to fund coal and gas if they suddenly need to keep their donors happy.”

Meanwhile, Ms King’s spokesman said the $9.5bn in economic benefit the NAIF’s investments in Queensland so far were expected to have showed it was supporting “transformational projects that will set up the Northern Australian economy for generations to come”.

Queensland projects the NAIF has backed $1.2bn in investments towards include the Mt Morgan Gold and Copper Project, Rockhampton Airport Maintenance Hub, Kidston Pumped Hydro, the expansion of the Bauxite Hills Mine, two projects with universities and the Townsville Airport expansion.